Top 5 Forex Prop Firms
We have a list of the Top 5 Forex Prop Firms. Forex is the most popular market for funded traders. On this page, we will list the top 5 forex prop firms that you should check out if you are looking to trade forex. We rank them based on the leverage offered for forex trading, the flexibility of the trading rules, and the price or difficulty of joining those prop firms.
Can forex make you money?
For those that love to trade other markets and have never tried trading forex, you might be wondering if you can make money trading forex.
Because it costs the least amount of capital to begin day trading, many people like trading forex. All week, trading is available around-the-clock. The leverage in forex trading allows for significant profit potential. Leverage allows a professional forex day trader with a good strategy to earn between 5% and 15% per month with a respectable win rate and risk/reward ratio. But due to the high level of volatility associated with forex trading, both losses and gains might be significant.
How to get funding from forex prop firms?
If you don’t have enough capital, the easiest way is to join a prop firm. By joining a prop firm, you receive a large enough capital to start with. The earnings increase as capital increases. The great thing about joining prop firms is that they scale. So if you are consistently profitable, your capital will keep increasing.
Just by paying a small one-time fee, it could be your money-making machine for a long time. If you want more details about how to join a prop firm, you can read our articles here “How to Get Instant Funding for Forex?” and “What is the Easiest Way to get a Funded Account?”
Let’s start with our list of the best forex prop firms!
1. FundYourFX
Most people only know of the big prop firms. But there are some prop firms that are not as famous, but we consider them to be the best. FundYourFX has consistently been our top prop firm. We love the fact that the fee for joining is the best value out of all the instant funding prop firms.
For a low fee of £197 with the Starter program and you get $6,000 in real capital. They also have the Standard at £297 for $15,000 funding. The last is the Professional program with $30,000 funding for £577. And this one-time fee is refundable on your 5th profit share. So as long as you are profitable and manage to hit 10% profit 3 times, you will get your fee refunded.
So there is a benefit in trading with them. Not just for the refundable fee, but when we say begin live trading, we meant it. It’s straight funding without the challenge. If you’re looking to make money fast, then you are looking for instant funding.
So why are they one of the best prop firms for forex trading? Other than how easy it is to get instant funding, the leverage for forex is 1:100. This is better than most prop firms.
The rules here are also flexible. To help your forex trading, any trading strategy or style is allowed at any time of day. You are allowed to use your own EAs, trade the news, hedge positions, and leave open trades overnight and over the weekend. As long as you follow their rules, you are allowed to copy trades made using other people’s signals, engage in tick scalping, and use emulators.
In terms of the currency, you are able to trade, they provide more than 40 currency pairs, including the major, minor, and exotic trading pairs. So overall they would satisfy the average forex traders.
2. FTMO
FTMO is a famous prop firm and a lot of people know of them. They have been around, since 2014. Their challenge is famous. But there is no guarantee that you will pass their challenge. Just completing the challenge will take a while. If you need to make money fast, then this is not the prop firm for you. But if you have all the time in the world and money to throw away on challenges, then go ahead and choose this prop firm.
Most people are unaware that FTMO does not truly allow you to trade with real money. You will always be trading in Demo mode, even if your account is funded. If that doesn’t bother you then it won’t be a problem.
They provide leverage up to 1:100 for forex, which cannot be raised. On request, the leverage can be decreased. Leverage for the swing account type is set to 1:30 for forex. They offer major, minor, and exotic trading pairs as well.
Compared to FundYourFX, where you have more freedom, FTMO has some restrictions. They require you to close your positions right before the markets close for the weekend or if the rollover (market break) lasts longer than two hours if you become an FTMO Trader and manage an FTMO Account or FTMO Account Aggressive.
FTMO might be famous, but there are some things that might not suit traders. But overall they are a reputable prop firm and probably the most well-known.
3. The 5%ers
They are other prop firms that have both instant funding and challenge. If you want instant funding, you can compare them to FundYourFX. Basically, their fee is higher and you get a smaller capital. You can read all about it here where we explain the best instant funding accounts. Their leverage is also smaller. For the low-risk programs, the leverage is 1:6 and for the aggressive programs the leverage is 1:30. They said in a blog that they don’t like high leverage. So if you like instant funding and slow profit, then they should be suitable for you. We also like to mention that they have a maximum 6% drawdown.
Their trading rules are quite flexible as well, like FundYourFX. And you also get a real account and not some demo account like FTMO. But there is something different from them compared to the other 2.
The5ers transact directly with suppliers of commercial liquidity. Their methods of operation and the requirements for their trading conditions differ. They claim they wish to maintain the anonymity of their provider.
When you trade with them, you are given access to a piece of their capital and given the authority to trade on behalf of The5ers Fund (directly from their trading pool account). The MetaTrader 5 trading platform is provided by The5ers and is provided by a third-party technology integrator.
All trading activity for the 5%ers is carried out through their brokers using STP Market Execution. They have a platform that uses an ECN-Broker-Fees-Structure. The fee, which is $4 per lot round trip (0.4 pips), is presented separately from the spread. For EUR/USD, the spread is around 0.1 to 0.5 pips.
Whereas FTMO use institutional liquidity providers, which allows them to benefit from deep market liquidity with no fees or swaps on trades and narrow spreads, there are fees in 5%ers.
4. The Funded Trader
The Funded Trader is another prop firm that requires you to pass a challenge to get funding. Like FTMO, you are trading with virtual funds in a demo account. But unlike FTMO, you are not allowed to use EAs for most of their accounts. The only account that can use EA is the Royal Challenge account.
The leverage for a regular funded trader account is 1:100. But for their swing account, the leverage is 1:30.
The Funded Trader has 2 brokers. And you should know that they don’t permit the trading of crypto during the weekend on the Purple Trading broker. However, you can trade crypto over the weekend on the Eightcap broker. But there is another, however. As of June 20th, 2022, The Funded Trader does not allow holding trades over weekends for the Standard Challenge – Regular Account and Rapid Challenge – Regular Account.
So if you want weekend trading, you need the Standard Challenge – Swing Account, Rapid Challenge – Swing Account, or the Royal Challenge.
Just make sure you know what you are signing up for and choose the account that suits you. Or if you want something easier and not complicated, just choose a prop firm with only 1 account and flexible rules.
5. MyForexFunds
MyForexFunds also have instant funding. But it is expensive compared to FundYourFX or 5%ers. £400 only gets you $10,000, whereas you get $15,000 for £297 or $30,000 for £577 in FundYourFX, which is a better deal. However, if you don’t have £400 then you can get their micro capital of $2,000 for £80. But they also have a challenge account if you are into it.
For the leverage, they offer 1:50 and 1:100 depending on the model. So for Conventional Accelerated, the leverage is 1:50 for Forex. An Emphatic Accelerated has1:100 for Forex.
Another thing is the overall drawdown is different. The Conventional model will carry a 5% overall drawdown and the Emphatic model will come with a 10% overall drawdown.
Their rules are not as good as the other prop firms. They are quite strict and there are things you can’t do. We will mention what is not allowed just so traders will know what they can and can’t do at MyForexFunds.
First is that a trader must close all of their trades over the weekend. Weekend trading is not allowed in MyForexFunds and FTMO. Also, make a note that they allow expert advisers for copying purposes only. However, you are only allowed to copy trades of your own using a trade copier. If you copy someone else’s trades, you will be considered in breach of their account.
Any EA/Robots being used on the account otherwise will cause a breach of contract and loss of account. This is why it is important to read the small prints. If you want to use your own EA, you have to submit your expert adviser or bot for prior approval. If you like using EA, then this is probably not suitable for you.
In Summary
If you want to join a prop firm, make sure you check out what you can and cannot do. Sometimes the prop firms make it hard to keep track of all their programs with different rules. Be sure to check out the FAQ to find information that might not be available on their landing page. All the prop firms listed here are reputable and do payout their traders. You only need to choose one or more that suits you.
